From Columbus Business First, Women of Influence is an interview series showcasing some of the most powerful women in the Central Ohio business community. Hosted by Eleanor Kennedy, Assistant Managing Editor.
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episode 35: Crisis Management: Alliance Data's Ralph Andretta on Great Recession learnings and the company HQ
Even though retailers may be struggling through the coronavirus pandemic, few of their customers are defaulting on their credit card bills.
As the crisis unfolded, Alliance Data Systems Corp. managers looked back to the 2008 recession for credit management models to follow and what to avoid, CEO Ralph Andretta said.
"During the Great Recession, I’m not sure Alliance Data had a deep enough bench when it came to the forbearance programs they offered customers," he said. "That has changed."
The company has offered some credit forbearance, such as offering plans to skip a payment, but few shoppers are taking up the most extreme 12-month program.
“What we’ve also seen is people are paying not just their minimum due, but a bit better than their minimum due on their cards,” Andretta said. “They’re keeping up with their bills; they’re spending and they’re paying. That’s that that’s exactly the type of loyalty you want.”
Andretta started in February, joining a growing list of Central Ohio leaders who took the helm right before or in the midst of the pandemic.
The latest episode of our Crisis Management podcast series represents his first interview with Columbus Business First since taking the job.
The Columbus company branded credit cards for retailers, such as fashion, beauty and home improvement stores; and a division in Texas operates loyalty programs like airline miles.
Andretta is optimistic about the future of retail and the shopping mall – maybe they'll be more showroom than point of purchase, but physical gathering places will eventually return, he said.
We discuss how the company can emerge stronger due to renewed focus and reduced expenses, both temporary and ongoing, as well as how Andretta landed the job and what it was like to be "battle tested" right after taking the reins.
Andretta previously was managing director of the U.S. credit cards business at competitor Citigroup Inc. He was named last November to succeed Melissa Miller, who had moved the HQ to Columbus from Plano, Texas.